Firms must encourage supplier innovation

9 March 2007
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09 March 2007 | Steve Bagshaw

Are cost reduction and supply chain management relevant to the future of global sourcing? Not according to some of the delegates at a pan-European hospitality conference held last week.

"We have to change our mindset," said David Dreschner, vice-president, purchasing services at Rezidor SAS Hotels. "Global sourcing is a lot more than cost reduction. It is about product innovation." Using BMW as an example, he said that demanding and encouraging supplier innovation was the way forward.

Speaking at the same Prestige Purchasing event in Brussels, fellow hotel buyer Pedro Martinez, corporate purchasing officer at Spain's NH Hotels, questioned the role of buyers dealing with suppliers on a day-to-day basis. "Supply chain management is not core to our business but it is critical to our success," he said. "But we do not do supplier management because that is down to day-to-day operations - it has to be done by local people."

SMmar2007

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